LIC eTerm Plan

As a pure protection plan, LIC e-Term plan can be purchased online in a simple and hassle freeway. Under LIC e-Term plan, a death benefit equal to the total sum assured amount is paid to the beneficiary of the policy in case of uncertain demise of the insured person during the tenure of the policy. As this is a pure term insurance plan, it offers an only death benefit and no maturity benefit is offered by the policy.

The policyholders can choose for a higher sum assured amount at an affordable premium rate. The LIC e-Term Policy offers different premium rates for non-smokers opting for a sum assured of Rs 50 lacs or more.

LIC e-Term Plan: Key Features

The following are the salient features of the LIC e-Term plan:

• The plan can be purchased online in a simple and hassle-free way.
• The plan provides a saving on premium for non-smoker and female lives.
• LIC e-Term plan offers tax benefit U/S 80 C of Income Tax Act.
• Add-on rider benefit is offered by the policy to enhance the coverage of the policy.
• LIC eTerm Plan traditional and a non-participating plan.
• The nominated person gets to receive the death benefit in case of unfortunate death of the policyholder.
• The minimum sum assured amount offered by the policy is Rs. 25 lakh and Rs.50 lakh for non-smokers, whereas there is no upper limit on the maximum sum assured offered by the policy.
• LIC e-Term Policy offers a minimum entry age of 18 years and the maximum entry age of the policy ranges up to 60 years.

 LIC e-Term Plan: Benefits

There are many different benefits offered by plan. Let’s take a look at e-Term policy in detail.

• LIC e-Term Policy offers substantial coverage at an affordable premium rate.
• There is no upper limit on the maximum sum assured amount offered by the policy.
• LIC e-Term plan offers a maximum maturity age of 75 years

Here are the further LIC e-Term plan benefits offered by the policy.

Death Benefit

In case of the unfortunate demise of the insured person during the tenure of the policy, a death benefit equal to the total sum assured amount of the policy is paid to the beneficiary of the policy.

Maturity Benefit

No maturity benefit is offered by the policy as this is a pure term insurance plan.

Income Tax Benefit

The premium paid towards the policy up to the maximum limit of Rs.1.5 lakh is eligible for tax exemption under Section 80C of Income Tax Act.  

LIC e-Term Plan: Eligibility Criteria

Before purchasing the LIC e-Term Policy, it is important to check the eligibility criteria of the policy. Let’s take a look at the eligibility criteria of the policy.

LIC e-Term Plan: Details about Premium

Annual premium in Rupees for a Policy Tenure of 15 years. Basic Premium is mentioned below (Tax not included)

LIC e-Term Plan Other Policy Details

Grace Period: 30 days’ grace period is allowed for premium payment. If the policyholder fails to make payment within the grace period, the policy lapses 

Policy Termination or Surrender Benefit: There are no surrender benefits available in this plan

Free Look Period: If the policyholder is not satisfied with the terms and conditions of the policy, then he/she can cancel the policy within the free-look period of 15 days from the date of policy initiation.

Loan- No loans are offered by LIC e-Term plan.

LIC e- Term Plan: Exclusions

When it comes to suicide committed within 12 months of policy inception, only 80% of premiums paid are returned to the nominee. When it comes to suicide within 12 months of revival, higher of 80% of premiums paid or acquired Surrender Value is paid.

LIC e-Term Plan: Documents Required

The documents that should be kept handy while purchasing the LIC e Term Policy are:

• Duly filled application form submitted by the applicant.
• Details of Medical History
• Address proof ( Aadhaar card, voter ID, Passport, etc.)
• Identity proof (PAN card, Aadhaar card, voter ID, Passport, etc)
• Know your Customer (KYC) documents
• Medical test if asked by the insurer based on the age of the applicant, the sum assured amount, and medical history.

The policyholder has to fill up an ‘Application form/ proposal form’ with accurate medical history along with the address proof and other KYC documents. A medical examination may be needed in some cases, based on the sum assured and the age of the person.

LIC e-Term Plan: Claim Process

If the beneficiary of the policy file claim against the LIC e-Term plan in case of the unfortunate demise of the insured person then certain documents are required to be submitted by the nominee of the policy to fulfill the process of claim. Let’s take a look at the documents that should be kept handy while filing the claim.

• Original copy of LIC e-Term Policy.
• Claim settlement form mentioning the details of the deceased policyholder.
• Age proof
• Certificate copy of FIR (First Information Report)
• In case of unnatural death of the policyholder or death due to accident then the beneficiary will need to submit the police investigation report and post-mortem report.
• Death certificate from municipality.

LIC e-Term Plan - FAQs